MMK strengthens positions in automotive sheet market

20.04.2017

OJSC Magnitogorsk Iron and Steel Works ("MMK") announces that in 2016 it increased metal shipments to the automotive industry by 12.6% year-on-year to 473,000 tonnes.

The share of automotive sheet sales in MMK’s overall domestic sales structure grew to 6.5% from 6%. This growth is even more significant since production of light motor vehicles in Russia fell 7.4% in 2016, according to Russia’s Federal State Statistics Service.

Sales to foreign car makers that have assembly plants in Russia in particular demonstrate the Company’s achievements. Metal sales to these companies grew 34.5% year-on-year to 26,900 tonnes in 2016 from 20,000 tonnes in 2015. Since 2013, shipments to international automotive corporations that have production facilities in Russia grew more than fourfold. In 2017, MMK plans to significantly increase metal shipments to localised car makers.

MMK is a leading supplier of ferrous metal products for car plants and facilities that produce components for the automotive industry. MMK’s rolled steel has already been approved by 80% of carmakers in Russia. 60% of them purchase MMK’s metal on a regular basis. The Company continues to implement its import substitution strategy and receives approved rolled steel supplier status. In 2016, MMK was the only metal company recognised with a prestigious award from Russian Automotive Forum for its achievements and contribution to the development of the Russian automotive industry.

About MMK

MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2016, the company produced 12.5 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2016 of USD 5,630 million and EBITDA of USD 1,956 million.